COST ACCOUNTING
BREAK EVEN POINT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Using the formula Selling Price per Unit-Total Variable Expenses per Unit = Contribution Margin / Fixed Cost ÷ Contribution Margin = Break Even Units.Choose the right answer to the next Problem:A manufacturer selling price per computer is $1270, to produce this computer the company has a total variable expenses per unit is $765 and a fixed cost for $960, Find the Contribution Margin and Break Even Units
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Contribution Margin = $506Break Even Units= $1
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Contribution Margin = $505Break Even Units= $1.9
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Contribution Margin = $507Break Even Units= $3
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Explanation:
Detailed explanation-1: -Thus, the selling price per unit formula to find the price per unit from the income statement, divide sales by the number of units or quantity sold to identify the price per unit. For example, given sales of $80, 000 for the year and 2, 000 units sold, the price per unit is Rs. 40 (80, 000 divided by 2, 000).
Detailed explanation-2: -Total contribution margin = Sales Revenue – Total Variable Expenses. Sales revenue = (Selling price)*(No. of units sold) = 150*2500.
There is 1 question to complete.